The US is once again offering its glamorous small business lending program. Nearly a third of the new $ 900 billion Covid-19 aid package will contribute to the expansion of the Paycheck Protection Program, or PPP, which is intended to save jobs in small businesses through another $ 284 billion in forgivable loans.
The original version, which was part of the CARES law passed in March, has been criticized for allocating a large portion of the funds to larger companies and for the lack of transparency and unequal rollout. The new round seeks to address some of these issues – for example, by channeling some funds through community-based lenders serving low-income lenders.
Businesses that have already obtained a PPP loan can apply under the extension. Here’s a look at the key features of both versions:
The Small Business Administration, which will manage the program, has ten days from the day the bill is signed to issue new rules to implement it.